In the latest staff report on the CP Rail Yard site, the Ticats offer to contribute $8-10 million in capital costs toward the stadium.
By RTH Staff
Published October 08, 2010
City staff have published their information report [PDF link] detailing the latest updates on the Pan Am Stadium proposal that will be presented to Councillors at the October 12 Committee of the Whole meeting.
Since the previous information report, Staff still recommend that Council present the CP Rail Yards as the City's recommended stadium location and formally ask the Ontario and Federal governments for additional funding to increase the stadium from 15,000 seats to 25,000 seats.
What has changed is that the Hamilton Tiger-Cats are now offering to contribute $8-10 million in capital costs toward the construction of the stadium, spread over a ten year period. They also offer to contribute $200,000 a year, collected through a ticket price surcharge, toward a "capital reserve" fund held by the city.
The Ticats will enter into a 20 year contract with the City to operate the stadium "at no risk to the city" but with an annual $300,000 management fee paid by the City. The Ticats wish to reserve the right to collect revenues from Naming Rights on the stadium. The City would be allowed to use the stadium for community events at no extra charge.
The Ticats have secured an exclusive option to a NASL soccer team and are working to establish a team that will play at the stadium. They plan to start a soccer academy in conjunction with the NASL team.
The Ticats will also purchase 10-15 acres of land from the CP Rail Yard to build an operate a hotel/convention centre, which is expected to generate op to $500,000 a year in property tax assessments.
Pan Am HostCo has reiterated that it requires the City to: undertake a class Environmental Assessment on the site and arrange for any necessary remediation; prepare a functional programming assessment based on BMO Field in Toronto; and demonstrate that the funding shortfall has been addresses.
HostCo also demands that Hamilton agree to pay a $500,000 fee to cover their planning, design and compliance process in the event that the City backs out of a Pan Am stadium.
The Province has indicated a willingness to help with the additional cost of purchasing the land, relocating its tenants, remediating the land and upgrading the stadium to meet CFL requirements. However, the Federal government maintains that the private sector needs to fill the funding gap.
Council have identified the Ivor Wynne and West Harbour sites as priorities for redevelopment, but Staff have not yet prepared recommendations for these locations. The report states that they will provide a list of recommendations shortly. In the meantime, the staff report recommends demolishing the West Harbour properties the City has already acquired "where demolition is of paramount public interest."
The Ticats have offered to establish a "Hamilton Legacy Foundation" to support the redevelopment of Ivor Wynne and West Harbour, though they have not yet released any details about what this would entail.
A traffic study prepared by McCormack Rankin found that $6 million in road and highway improvements are required to prepare the area to accommodate game traffic.
The net funding shortfall today stands at around $20 million - plus the total land acquisition costs, which are still in camera. The total funding shortfall will be somewhere around $50-60 million.
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